market sentiment

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Market Sentiment

A subjective measure of how investors are feeling about a security or market. Generally speaking, market sentiments are positive when stock prices are going up and negative when they are going down. Because feelings sometimes change more slowly than a market's underlying fundamentals, market sentiment helps explain why securities have a tendency to become either overvalued or undervalued. Some investors plan to make investment decisions in a way that disregards market sentiment, while others attempt to profit from it. See also: Crowd theory, Subjective probabilities, The Theory of Moral Sentiments.

market sentiment

The intuitive feeling of the investment community regarding the expected movement of the stock market. For example, if market sentiment is bullish, then most investors expect an upward move in the stock market.
References in periodicals archive ?
The economic sentiment indicator dropped in August by seven points to 110.
The Standard Chartered-MNI Business Sentiment Indicator (BSI) for Kenya fell to 58.
The climate for IPOs in Germany has considerably improved, according to the IPO sentiment indicator jointly developed by Deutsche Boerse and TU Munich.
Watchers of the market who have a focus on Nigeria will now be able to benefit from two market indicators sponsored by the bank, a Business Sentiment Indicator and the recently launched Consumer Price Tracker.
The Economic Sentiment Indicator (ESI) for Cyprus fell slightly for a second consecutive month in September to 99.
The commission's Economic Sentiment Indicator (ESI) climbed from a November reading of 98.
The economic sentiment indicator continued to improve in the eurozone in October for the sixth consecutive month, driven primarily by improved confidence in industry.
ADPnews) - Aug 25, 2010 - The Czech economic sentiment indicator decreased by 0.
The European Commission said its economic sentiment indicator for the 16-nation currency area rose to 101.
The Dow Jones Economic Sentiment Indicator (ESI) aims to predict the health of the economy by analyzing the coverage of 15 major daily newspapers in the U.
Another sentiment indicator is the media because they are invariably focused on what just has spectacularly happened (because that is what makes a good story) rather than what is about to happen.
Siegel noted another sentiment indicator developed by Richard Bernstein, director of quantitative and equity research at Merrill Lynch in New York.